Paul Tudor Jones II’s Tudor Investment Corp. has launched a new hedge fund — Tudor Riverbend Crossing Partners.
The fund will specialize in event-driven strategies. However, it will not be an activist fund. Rather, it will concentrate on corporate catalysts, such as merger arbitrage, spin-offs and restructurings.
Tudor Riverbend is being seeded by $38 million from the Greenwich, Connecticut, firm, best known for its macro investment strategy.
So far Riverbend Crossing has not raised outside money. The fund will be headed by Emil Dabora, who joined Tudor in February 2015. Dabora has a history of investing in event-driven-related strategies.
Dabora was formerly managing director and head of developed equity markets at Harvard Management Co., where he spent more than five years. He managed several equity portfolios including event driven, U.S. long-short, and European long-short as well as beta delivery. He is also credited with building and managing Harvard’s centralized execution desk.
Before that, Dabora was a senior managing director at New York–based macro hedge fund firm Caxton Associates when it was led by founder Bruce Kovner. Dabora was a senior managing director for seven years and is credited with founding the firm’s event-driven group.
Before that, he worked at Morgan Stanley as a vice president.
Dabora has a Ph.D. in economics from Harvard University and a BS in economics from the Massachusetts Institute of Technology.
Bloomberg first reoprted his hiring at Tudor.
Tudor managed a total of $12.8 billion at the start of the year, down from $13.4 billion at the beginning of 2014. The firm currently has $11.6 billion under management.
The firm’s flagship Tudor BVI Global Fund, managed by Paul Tudor Jones, was down nearly 4 percent through May and posted low- to mid-single-digit returns in four of the five previous years.
Earlier this year Tudor reportedly suffered about $1 billion in redemptions.
Last year Tudor shut down its Tudor Futures Fund, Jones’s first hedge fund. It managed about $300 million at the time. It also never suffered a down year.
Event-driven strategies are among the top-performing hedge funds this year. According to HFR, they rose 1.3 percent in May thanks to an increase in mergers and acquisitions, and 2.5 percent for the year.
By contrast, many activist funds, which are a subset of event driven, are in the red for the year.
